Recently Issued Accounting Standards

9 Months Ended

Sep. 30, 2017

Recently Issued Accounting Standards

Recently Issued Accounting Standards

Note 3.Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers (Topic 606).”  The amendments in ASU 2014-09 supersede most of the current revenue recognition requirements.  The guidance provides a single comprehensive model for entities to use in accounting for revenue arising from contracts.  The guidance specifically notes that lease contracts with customers are a scope exception however, the standard impacts accounting for our revenue other than lease revenue.  ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 for public entities, including interim periods within that reporting period, and is required to be applied using either a full retrospective approach or a modified retrospective approach.  Early adoption is only permitted as of reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period.  The standard will not have a material impact on our consolidated financial statements and will not have an impact on our historical consolidated financial statements.  We plan to adopt the guidance effective January 1, 2018.

In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), “Leases (Topic 842).”  The amendments in ASU 2016-02 set out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors.  According to the guidance, accounting for leases by lessors would remain basically unchanged from the current existing concepts.  ASU 2016-02 will be effective for annual reporting periods beginning after December 15, 2018 for public entities and is required to be applied using the modified retrospective transition approach. Early adoption is permitted. We noted that Lessor accounting is similar to the current model but the guidance will impact us in scenarios where we are the Lessee. We are currently evaluating this guidance but do not believe that the adoption of the standard will have a material impact on our consolidated financial statements.

In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-01 (“ASU 2017-01”), “Business Combinations (Topic 805).”  The amendments in ASU 2017-01 provides a new framework for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.  ASU 2017-01 will be effective for annual reporting periods beginning after December 15, 2017 for public entities. Early adoption is permitted. We have concluded our evaluation of this guidance and determined that the standard will not have an impact on our financial statements.